MAGNESIUM METAL1/
(Data in thousand metric tons, unless noted)
Domestic Production and Use: Three companies in Texas, Utah, and Washington produced
primary magnesium in 1995 valued at approximately $460 million. An electrolytic
process was used at plants in Texas and Utah to recover magnesium from seawater and
lake brines, respectively. A thermic process was used to recover magnesium from
dolomite in Washington. The aluminum industry remained the largest consumer of
magnesium, accounting for 55% of domestic primary metal use. Magnesium was a
constituent in aluminum-base alloys that were used for packaging, transportation, and
other applications. Castings and wrought magnesium products accounted for 20% of
U.S. consumption of primary metal; desulfurization of iron and steel, 12%; reducing
agent in nonferrous metals production, 6%; cathodic protection, 2%; and other uses,
5%.
Salient Statistics--United States: 1991 1992 1993 1994 1995e/
Production: Primary 131 137 132 128 140
Secondary 51 57 59 62 60
Imports for consumption 32 12 37 29 33
Exports 55 52 39 45 37
Consumption: Reported, primary 92 94 101 112 110
Apparent 134 142 148 149 167
Price: Metals Week, U.S. spot Western,
dollars per pound 1.43 1.50 1.46 1.63 2.10
Metal Bulletin, free market,
dollars per metric ton NA 2,625 2,260 3,125 4,300
Stocks, producer and consumer,
yearend 27 13 26 19 18
Employmente/ 1,650 1,450 1,400 1,400 1,400
Net import reliance2/ as a percent of
apparent consumption E E E E E
Recycling: In 1995, about 30,000 tons of the secondary production was recovered from
old scrap.
Import Sources (1991-94): Canada, 46%; Russia, 29%; Mexico, 6%; Ukraine, 6%; and
other, 13%.
Tariff:
Most
Item Number favored nation (MFN) Canada Mexico Non-MFN3/
12/31/95 12/31/95 12/31/95 12/31/95
Unwrought
metal 8104.11.0000 8.0% ad val. 2.4% ad val. Free 100% ad val.
Unwrought
alloys 8104.19.0000 6.5% ad val. 1.9% ad val. 3.9% ad val. 60.5% ad val.
Wrought
metal 8104.90.0000 14.8›/kg on Mg 4.4›/kg on Mg Free 88›/kg on Mg
content + 3.5% content + 1% content +
ad val. ad val. 20.0% ad val.
Depletion Allowance: Dolomite, 14% (Domestic and Foreign); magnesium chloride, 5%
(Domestic and Foreign).
Government Stockpile: None.
Events, Trends, and Issues: Reduced imports, particularly from Russia, and increased
demand, primarily for diecastings, led to a tight supply of magnesium in the United
States. Free market magnesium prices climbed sharply during the year to reach a high
of $4,450 per ton in mid-August. Prices stabilized after August, but did not begin
to decline until October.
On April 26, the International Trade Commission (ITC) announced its determinations in
the final antidumping investigations of magnesium imports from China, Russia, and
Ukraine. The ITC determined that the United States magnesium industry was injured by
imports of pure magnesium from these three countries, but it was not injured by
imports of alloy magnesium. This decision confirms final duties announced by the
Department of Commerce in March setting deposit rates as follows: for China,
108.26%; for Russia, 0% to 100.25%, depending on the importer and the producer; and
for Ukraine, 79.87% to 104.27%, depending on the importer.
Several companies were planning additional magnesium production capacity around the
world. A Canadian firm announced that it would construct a demonstration plant in
Pointe Claire, Quebec, to start operation by early 1996. If the demonstration plant
proves successful, the company planned to start construction of a 58,000-ton-per-year
plant
Prepared by Deborah A. Kramer, (703) 648-7719.
MAGNESIUM METAL
in 1997, with the first commercial metal production early in 2000. The company
planned to recover magnesium from asbestos tailings using a combination of leaching,
dehydration, and electrolysis. The Norwegian magnesium producer announced that it
would increase magnesium production at both its plants in Norway and Canada so that
they would be running at full capacity by the second half of 1995. Total annual
capacity for the two plants is estimated to be about 88,000 tons. A regional firm
announced that it had completed a prefeasibility study to construct a 25,000-ton-per-year
primary magnesium plant in Iceland. The final feasibility study, which will be
completed in September, will reflect the company's design to use inexpensive local
geothermal energy for the plant. Cost of the plant was estimated at $250 million,
and construction would take 2 to 3 years.
The State Planning Commission of China announced ambitious plans to more than double
its production in the next 2 years. The Minhe magnesium smelter in Qinghai Province
was expected to double its capacity to about 6,500 tons per year by the end of 1995.
A joint venture between Chinese and Japanese companies was scheduled to start
production in September in Jiangsu Province with an annual capacity of 4,000 tons.
China's Jilin Province planned to construct four magnesium plants with a total
production capacity of 8,200 tons per year. The new plants were scheduled to start
up in 1996. The Linjiang Government also planned two plants with a total capacity of
6,000 tons per year. Several other city and provincial governments were seeking
foreign investment to build new magnesium facilities.
A U.S. magnesium desulfurization reagent producer opened a new magnesium granule
plant in Walkerton, IN, at the end of June. The new plant replaced two older plants
in two other Indiana cities. Production capacity for magnesium granules from
secondary magnesium remained essentially unchanged at 5,400 tons per year, but
capacity for preblended desulfurization reagent doubled to 43,500 tons per year. The
projected capacity for a new Indiana magnesium scrap refining plant was tripled to
32,000 tons per year. The plant was originally designed for a 10,000-ton-per-year
capacity when it was announced in late 1994. Construction of the facility is slated
to begin in early 1996, with initial start-up in late 1997. A total of 24,000 tons
of capacity will be dedicated to high-purity secondary ingot, and 8,000 tons will be
for magnesium chips for desulfurization. A domestic diecastings producer planned to
build a new magnesium diecasting plant in Hannibal, MO. Initially the plant will
operate two 1,200-ton cold chamber diecasting machines, but the company may triple
the plant's capacity within 3 to 5 years.
World Primary Production, Reserves, and Reserve Base:
Primary production Reserves and reserve base4/
1994 1995e/
United States 128 140 Domestic magnesium metal production is
Brazil 10 10 derived from natural brines and dolomite,
Canada 29 47 and the reserves and reserve base for this
Chinae/ 11 12 metal are sufficient to supply current and
France 9 10 future requirements. To a limited degree,
Japan 3 -- the existing natural brines may be considered
Kazakstane/ 15 15 a renewable resource wherein any magnesium
Norway 28 35 removed by humans may be renewed by nature
Russiae/ 25 35 in a short span of time.
Serbia and Montenegro 2 2
Ukrainee/ 7 5
World total 267 311
World Resources: Resources from which magnesium may be recovered range from large to
virtually unlimited and are globally widespread. Resources of dolomite and
magnesium-bearing evaporite minerals are enormous. Magnesium-bearing brines are
estimated to constitute a resource in billions of tons, and magnesium can be
recovered from seawater at places along world coastlines where salinity is high.
Substitutes: Aluminum and zinc may substitute for magnesium castings and wrought
products. For iron and steel desulfurization, calcium carbide may be used instead of
magnesium.
e/Estimated. E Net exporter.
1/See also Magnesium Compounds.
2/Defined as imports - exports + adjustments for Government and industry stock
changes.
3/See Appendix B.
4/See Appendix C for definitions.
Mineral Commodity Summaries, January 1996